Homeowners Insurance Claims: 4 Things To Know

Summer storms can bring more than heavy rains, high winds, and hail stones. These powerful weather systems can also bring headaches tied to the homeowners insurance claims process. While the advertising messages from insurance companies would persuade customers that the process is simple, painless, and fast, the reality is far from the fantasy presented in TV commercials. Property owners often encounter difficulties during the homeowners insurance claims process that the carriers choose not to disclose.

Homeowners Insurance Claims and Adjusters

An early step in the homeowners insurance claims process comes when the insurance carrier’s adjuster visits the policy holder. The adjuster examines the extent of the damage, verifies the terms of the policy, and submits a report to the insurance provider. The provider bases the homeowners insurance claims decision on the adjuster’s report. The problem that policy holders encounter is that the adjuster works on behalf of the provider, not the policy holder. Homeowners can hire a public adjuster to examine the damage, then compare the public adjuster’s assessment to that of the carrier’s adjuster.

Homeowners Insurance Claims and Scam Artists

Many reputable contractors make a substantial part of their incomes from homeowners insurance claims. However, some less scrupulous groups take advantage of homeowners who have sustained extensive storm damage. These “storm chasers” show up at the door of a storm victim, claim that they can do the repairs quickly and inexpensively, then disappear without a trace after they collect their payments. Some of these groups may convince policy holders to sign over their homeowners insurance claims checks before beginning their “repairs.” Homeowners should learn about any contractor’s reputation by getting references, requesting their state licensing and insurance information, and writing down their license plate numbers.

Homeowners Insurance Claims and Supplemental Coverage

In some cases, standard homeowners insurance claims will not cover specific types of damage. A typical homeowners insurance policy does not include flood coverage. In some states, such as Texas, policy holders must also buy supplemental windstorm insurance. Policy holders should find out what their policy covers before the damage is done, not during the homeowners insurance claims process.

Homeowners Insurance Claims and Denials

Insurance companies, just like any other business, exist to make a profit. When a major disaster strikes, the numerous high-dollar homeowners insurance claims made by policy holders can endanger those profits. Some carriers may choose to underpay or deny homeowners insurance claims to protect their profits. If a homeowner can show that their insurance carrier failed to live up to hits policy, they can file a lawsuit to recover the amount due to them on their claim. In many states, such as Texas, plaintiffs who can prove that their homeowners insurance claims were unfairly denied or underpaid can receive punitive damages for up to triple the amount of the original claim.

Source: U.S. News and World Report

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